TIGER Money Market Active Net Assets 515.7 Billion

Mirae Asset Global Investments announced on the 29th that the net assets of the 'TIGER Money Market Active ETF' have surpassed 500 billion won.

According to the Korea Exchange, as of the closing price on the 28th, the net assets of the TIGER Money Market Active ETF are 515.7 billion won. It surpassed 500 billion won in about two weeks after surpassing 300 billion won on the 15th. Since its listing on April 22, the cumulative net purchase volume by individuals for this ETF is 20.6 billion won, which is the fastest trend among money market ETFs listed domestically.

This year, as market volatility prolongs and the trend of interest rate cuts continues, the demand for investment to flexibly manage short-term funds has significantly increased. This ETF meets such investment demand and is gaining attention as an alternative to deposits, savings, and other parking-type products.

This ETF is a short-term fund type ETF that invests in ultra-short-term bonds and commercial papers (CP). It is similar to existing MMFs in terms of composition or duration but has relatively fewer operational restrictions and applies market valuation, allowing for excess returns compared to general MMFs. In terms of yield, it is expected to perform better than other interest rate products. As of the 28th, the CD 91-day interest rate, a representative indicator of interest rate products, has fallen to 2.63%, while the maturity expected yield (YTM) of the TIGER Money Market Active ETF is 2.91%.

Kim Dong-myung, Head of Bond ETF Management at Mirae Asset Global Investments, said, "As we enter a period of interest rate decline, the expected yield level of interest rate ETFs, which received much attention until last year, has fallen, but the TIGER Money Market Active ETF is expected to offer relatively high returns by securing stability and capital gains during interest rate cuts," adding, "It is time to actively consider investing in money market ETFs in the changing interest rate environment, as the YTM of CD rate ETFs and money market ETFs differ by more than 0.25%." Choi Doo-sun, reporter